Business

August 1, 2012

Lender sues to foreclose on former Ryan Aviation headquarters

The main lender for the former Ryan Aviation headquarters in downtown Wichita is seeking to foreclose on the building.

The main lender for the former Ryan Aviation headquarters in downtown Wichita is seeking to foreclose on the building.

Dougherty Funding of Minneapolis, Minn., said in the foreclosure lawsuit filed July 19 that Rubloff Wichita LLC failed to pay off its loan, or refinance it, when it became due on April 15. Dougherty is seeking $4.8 million, plus interest, fees and unpaid taxes.

Ryan Aviation sold the building at the corner of Second and Main streets to Rockford, Ill.-based Rubloff Jet Express in August 2004. The city of Wichita issued $3.5 million in industrial revenue bonds in 2004 after the company promised to expand in Wichita. Rubloff technically leased the building, but acted as owner and was its mortgage holder, said Jack Marvin, the attorney representing Dougherty Funding.

In 2006, Ryan Aviation left Wichita The building’s tenants now are Level 3 Communications and Wichita Technology Center.

Ryan Aviation declared bankruptcy in March, according to court documents, and got permission from the court in June to reject any lease interest in the building.

Marvin said he wants ownership of the bonds used as loan collateral to gain control of the building. He has asked for the court to allow the Martens Cos. to manage the building.

A message seeking comment from Rubloff Development was not returned Wednesday.

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